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The report finds that sustainable finance taxonomies generally suffer from incomplete sectoral coverage, a tendency to prioritize usability over technical rigor, and a lack of specific, measurable criteria for methane abatement. While the energy sector has the most extensive coverage, agriculture and waste sectors are inconsistently addressed. The authors propose a set of evidence-based best practices and technical screening criteria to improve the environmental integrity of green finance frameworks.

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  • Sustainable finance taxonomies exhibit three core structural weaknesses: incomplete sectoral and activity coverage, a preference for usability over technical accuracy, and a lack of specificity in criteria and safeguards.
  • There is significant inconsistency in how methane-relevant sectors are addressed; for example, the EU taxonomy omits agriculture entirely, and Indonesia's taxonomy lacks coverage for solid waste and wastewater.
  • Taxonomy developers often over-simplify technical screening criteria (TSC) to increase user-friendliness, replacing science-based thresholds with generic requirements such as 'monitoring' or 'contingency' plans.
  • Methane-related criteria are frequently qualitative or implicit, particularly in agriculture and waste, lacking quantified performance benchmarks, emission thresholds, or specified leakage rates.
  • The energy sector has the most extensive coverage of methane-related activities, but fossil fuel-related activities are limited because they often fail to meet 'substantial contribution' criteria for climate mitigation.
  • In the agriculture sector, livestock and rice production are either omitted or vaguely addressed; only Thailand provides relatively granular measures for rice cultivation, such as alternative wetting and drying, though it still lacks quantitative benchmarks.
  • Wastewater and solid waste activities are generally included across most taxonomies except Indonesia, with anaerobic digestion of sewage sludge and landfill gas capture being the most consistently addressed activities.
  • The report identifies a lack of advanced monitoring, reporting, and verification (MRV) tools, such as satellite or remote sensing, across the reviewed waste sector taxonomies.
  • The report provides a comprehensive framework of best-practice measures, including specific lifecycle GHG emission thresholds for bioenergy and mandatory leak detection and repair (LDAR) protocols.

Cite the original document

APA
Wetmańska, Z., Fernandes, P. D. A., Miao, G., Shankar, V., & Alanah, I. (2025). Methane Abatement in Sustainable Taxonomies. Climate Policy Initiative. https://www.climatepolicyinitiative.org/wp-content/uploads/2025/12/Methane-Abatement-in-Sustainable-Taxonomies.pdf
Chicago
Wetmańska, Zofia, Pedro de Aragão Fernandes, Gaoyi Miao, Varun Shankar, and Ines Alanah. Methane Abatement in Sustainable Taxonomies. Climate Policy Initiative, 2025. https://www.climatepolicyinitiative.org/wp-content/uploads/2025/12/Methane-Abatement-in-Sustainable-Taxonomies.pdf.
Wikipedia
{{cite report |last1=Wetmańska |first1=Zofia |last2=Fernandes |first2=Pedro de Aragão |last3=Miao |first3=Gaoyi |last4=Shankar |first4=Varun |last5=Alanah |first5=Ines |title=Methane Abatement in Sustainable Taxonomies |publisher=Climate Policy Initiative |date=December 2025 |url=https://www.climatepolicyinitiative.org/wp-content/uploads/2025/12/Methane-Abatement-in-Sustainable-Taxonomies.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}
BibTeX
@techreport{wetmaska2025methane, author = {Wetmańska, Zofia and Fernandes, Pedro de Aragão and Miao, Gaoyi and Shankar, Varun and Alanah, Ines}, title = {{Methane Abatement in Sustainable Taxonomies}}, institution = {Climate Policy Initiative}, year = {2025}, month = dec, url = {https://www.climatepolicyinitiative.org/wp-content/uploads/2025/12/Methane-Abatement-in-Sustainable-Taxonomies.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }

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